I am 22, and am fortunate enough to have a decent salary out of college ($100k). My sister is 25 and isn't as fortunate making minimum wage. My parents want me to be a middleman so to speak. They want me to get approved for the loan but have my sister make the down payment and mortgage payments. They plan on renting out the property.
My parents make a little over 9k from collecting rent from the properties they bought in the 1980s. I asked them why they couldn't get approved for a loan. They told me their old age would disqualify them from any mortgage loans. I asked why can't my sister use future rental income to help qualify for a loan. They said my sister wouldn't qualify for cheap health insurance if she owned a property (I'm not too sure what they mean by this. They wouldn't specify. Maybe it's related to some health insurance plan in California?). My sister has also been adamant against using a credit card until last year.
I definitely have reservations. It's not that I don't trust my sister, it's just that it seems absurd and stupid to me to buy a house when you're making minimum wage. I am currently paying off my mortgage for my own condo and car I recently purchased. I don't want to get screwed over having to make payments for another property. I voiced my reservations and my parents said I'm young and don't know how things work. They said I was being selfish. They said we're supposed to be family looking out for each other, and that they would cover the payments if my sister couldn't. They keep bringing up that they paid for my college. I'm lucky and thankful to have no debt because of them, but I just don't know about this.
EDIT: Thanks for all the advice. I was reserved before but I was not aware of the implications of mortgage fraud and the risk to my credit. I will definitely not go through with this.
Submitted December 22, 2020 at 08:26PM by PalPengy https://ift.tt/3mM0msm
